Online gambling operator Mr Green Ltd. today announced the acquisition of its Danish counterpart Dansk Underholdning. The deal represents part of the Malta-based gambling company’s strategy to expand into regulated markets.
Dansk Underholdning is licensed by the Danish Gambling Authority – Spillemyndigheden – and operates several iGaming brands in its domestic market. Following the acquisition, Mr Green will be able to launch operations in Denmark. This is set to happen later in 2017. The gambling operator said it expects the deal to impact positively its business by realizing additional earnings and operating cash flow.
The purchase is subject to approval from the local gambling regulator and is likely to be closed in April. Mr Green is set to pay €9 million in cash for the Danish operator. An additional consideration of €650,000 may be added to the initial purchase price in April 2018 in case certain preliminary posed conditions have been fulfilled.
Peter Eugen Clausen, the current Dansk Underholdning Chief Executive, will retain his post after the transaction is closed.
The Danish gaming operator generated revenue of around €4 million during 2016, up 27% from the results reported for the previous calendar year.
As mentioned above, Mr Green Ltd. acts as a buyer in the deal. The Malta-based and licensed company is subsidiary of the larger Swedish gambling group Mr Green & Co. The operator has previously pointed out that it would be focusing on expansion in different regulated jurisdictions. Aside from its Maltese gaming license, Mr Green also holds licenses from the Italian and UK gambling authorities.
The acquisition deal, although smaller in scale, is one of the first, if not the first, to be taking place at operator level this year. It is believed that the industry is poised to further consolidation in 2017, driven by regulatory changes in key European markets, challenging overall landscape, and growing competition.
The transaction will allow Mr Green to enter a relatively young but well-developing iGaming market. Online gambling operations generated revenue of DKK2.82 billion during the first three quarters of 2016, up more than 15% from the prior-year nine months. The Danish market’s growth in recent years and its good prospects to turn into a highly lucrative one has put it high on Mr Green’s priorities list, as CEO Per Norman revealed.
